How Long Is a Cashier’s Check Good For?

A cashier’s check is a secure payment method, issued and guaranteed by a financial institution. It is drawn directly from the institution’s own funds, not an individual’s account. This guarantee makes cashier’s checks a preferred method for large transactions, such as real estate deposits or vehicle purchases, where assured funds are required.

Understanding Cashier’s Check Validity

While cashier’s checks are backed by the issuing bank’s funds, they generally do not have a federally mandated expiration date. The funds associated with a cashier’s check never expire. However, practical and legal limitations can affect their usability over time.

A cashier’s check can become “stale-dated” if not cashed or deposited within a certain timeframe, typically 90 to 180 days, depending on the bank’s policy. While stale-dating does not invalidate the funds, the issuing bank is not obligated to honor it past this period. Banks may require additional verification, which can lead to processing delays.

If a cashier’s check remains uncashed for an extended period, it may become subject to state unclaimed property laws, known as escheatment. The timeframe for escheatment ranges from three to five years, varying by state regulations. Escheated funds are turned over to the state’s unclaimed property division. The original payee or owner must then file a claim with the state to retrieve the money.

Cashing or Depositing a Cashier’s Check

Upon receiving a cashier’s check, you have several options for cashing or depositing it. You can present the check at the issuing bank, where it can often be cashed immediately with proper identification. Alternatively, deposit the check into your own bank account. Some third-party services, like retail stores, may also cash cashier’s checks, though they often impose limits and charge a fee.

Regardless of where you cash or deposit the check, proper endorsement and valid identification are required. While cashier’s checks are secure, banks may still place holds on funds. Federal regulations require funds from cashier’s checks deposited in person to be available by the next business day. However, a bank can place a hold on amounts exceeding $5,525, or if there is suspicion of fraud.

Banks verify the authenticity of cashier’s checks to protect against fraud. Methods include contacting the issuing bank directly, examining security features like watermarks, holograms, and special paper, and verifying signatures. It is advisable to independently look up the issuing bank’s contact information rather than relying on a phone number printed on the check, as counterfeit checks may include fraudulent contact details. If a check proves fraudulent, the bank can charge back the funds from your account.

Resolving Issues with Old or Lost Checks

Dealing with an old or lost cashier’s check requires specific actions. If you have a stale-dated check not yet escheated, contact the issuing bank. The bank may honor it after verifying legitimacy or advise on obtaining a replacement. If funds have been escheated, contact your state’s unclaimed property division to claim them.

For a lost or stolen cashier’s check, the purchaser, not the recipient, must act quickly. Immediately contact the issuing bank to report the loss. The bank will require the purchaser to file a “declaration of loss” statement, a sworn legal document affirming the check is lost and cannot be recovered.

To protect the bank from potential loss if the original check is later found and cashed, the purchaser may need to sign an indemnity agreement or obtain a surety bond. This agreement obligates the signer to repay the bank if the original check is presented and paid after a replacement is issued. A waiting period, commonly 90 days, is enforced before the bank issues a replacement or refund, allowing time for the original check to surface. This period can sometimes be bypassed with a surety bond.